Investment managers are using ESG factors more frequently

A recent Russell Investments and BNY Mellon Investment Management study indicates greater utilization of ESG factors in the decision-making processes of active managers, as reported by Pensions & Investments. Here are some of the highlights, as described in the article:

  • 55% of respondents (total=300) say they now use material ESG investment factors to be part of the decision-making. 36% of those cited the possibility of superior risk-adjusted returns as a basis;
  • Governance was the most important factor for 86% of respondents.
  • An increase of 48% of respondents say they always address ESG issues in their meetings with company management.
  • 82% utilize a formal investment policy to guide ESG decisions.